Panama - Poverty and wealth

Photo by: Przemyslaw Moranski

Panama has extremes of wealth and poverty. The wealthiest 20 percent of
Panamanians control more than 50 percent of the country's wealth,
while the poorest 40 percent only control 12 percent. The wealthiest
Panamanians live a lifestyle that is similar to that of many
Americans—they have access to
consumer goods
such as cars, televisions, cellular phones, and so forth. However, the
majority of the nation's people live in poverty. Government
estimates in 1999, classified 48 percent of the nation as living in
poverty and 9.8 percent as living in extreme poverty. The
Human Development Report 2000
by the United Nations ranked Panama number 59 out of 172 countries.
This places Panama in the middle rankings of countries. The survey
measures nations' GDPs, education levels, and standard of living
to rate them in comparison with other countries. Many Western,
industrialized countries such as the United States, Canada, Norway, and
Luxembourg, usually rank among the highest in the survey, while lesser
developed nations in the poorer areas of the world rank toward the
bottom of the survey. Although Panama has a high GDP per capita, the
reality is that most of the income in the country is concentrated among
the wealthy few. For instance, in 2000, the nation's per capita
GDP was US$3,513. However, most poor people earn less than the average.
A worker making minimum wage in some areas of Panama would only earn
US$2,080 per year. Regulations on the minimum wage, social security
provisions, and working conditions are rarely enforced by the government
which means that many workers are unable to earn even the minimum wage.

GDP per Capita (US$)

Country

1975

1980

1985

1990

1998

Panama

2,572

2,709

2,887

2,523

3,200

United States

19,364

21,529

23,200

25,363

29,683

Mexico

3,380

4,167

4,106

4,046

4,459

Costa Rica

2,231

2,482

2,176

2,403

2,800

SOURCE:
United Nations.
Human Development Report 2000; Trends in human development and
per capita income.

Distribution of Income or Consumption by Percentage

Share: Panama

Lowest 10%

1.2

Lowest 20%

3.6

Second 20%

8.1

Third 20%

13.6

Fourth 20%

21.9

Highest 20%

52.8

Highest 10%

35.7

Survey year: 1997

Note: This information refers to expenditure shares by percentiles
of the population and is ranked by per capita expenditure.

SOURCE:
2000 World Development Indicators
[CD-ROM].

Poverty in Panama tends to be concentrated in specific geographic
regions. For instance, the nation's second largest city,
Colón, has the highest rates of poverty and crime in the Panama.
Unemployment among youth (ages 15 to 25) in Colón is estimated to
be 50 percent. There are also high levels of drug use, and Panama is
often cited as one of the main areas for the shipment of drugs from
South America to the United States.

Among the poorest in Panama are the indigenous native peoples, who make
up about 8 percent of the population (194,000). Native Americans suffer
from malnutrition and higher levels of disease and illiteracy. This
minority tends to live in the more remote areas of the nation where
access to education and health care is limited. In addition, the Native
Americans face discrimination in hiring and educational opportunities.
Minority groups, including ethnic Chinese and Indian, also face
discrimination.

how much of panama gnp is put into its healthcare system and were doese panama rank in the americas as far asits hospitals are concerned.iam an asmatic.what the thestatistis of this particular disease on panama. thank you